Dixie Chicks Suit Alleges 'systematic Thievery'

With a lawsuit recently filed against Sony Music Entertainment, Dixie Chicks join the ongoing efforts of other acts to challenge a system that results in what some artists view as one-sided recording contracts favoring labels.

The dispute began July 13, when the Chicks' attorneys served Sony with a notice that their contract was terminated "by reason of Sony's material misconduct and material breaches."

Sony responded with a July 17 suit seeking to prevent the group from leaving the label and calling the Chicks' charges "trumped up and baseless claims" (Billboard, July 28). The label is owed five more albums under the current contract.

The Chicks' countersuit, filed Aug. 27, claims fraud and breach of contract, and it charges that Sony withheld $4.1 million in royalties, at least $1.4 million of which is still unpaid. The suit further charges Sony with a practice of "systematic thievery," fraudulent accounting, and violation of the federal Racketeer Influenced and Corrupt Organization Act.

The suit claims that the Chicks are one of "thousands of recording artists signed to [similar Sony] contracts . . . and Sony intentionally fails to account and pay royalties to them in a fashion substantially similar to the way Sony deals with the Dixie Chicks."

The Chicks seek back royalties and termination of their contract. Specifically cited in the suit are alleged underpayments of royalties from record clubs, foreign sales, and proceeds from Sony's settlement with MP3.com for the dotcom's alleged exploitation of recordings, including those of the Chicks.

According to the suit, the group has "no intention of 'bargaining' with Sony or otherwise continuing their recording careers with Sony."

A Sony representative tells Billboard that the company does not comment on pending litigation.